The new Binance CEO has noted that Binance will begin operating a conventional corporate structure under his leadership.
New Binance CEO Richard Teng has promised that the firm will maintain a greater commitment to transparency moving forward. Teng made this pledge in his first blog post to the company users.
Mr Teng took over as CEO after Changpeng Zhao (CZ) pled guilty to charges of money laundering and sanctions violations. CZ was asked to step down from the company as part of a $4 billion criminal settlement with the US government.
Before his ascension to the office of CEO, Teng was the former Head of Regional Markets. He also has three decades of financial services and regulatory experience under his belt. Leveraging on these, Teng believes he has what it takes to lead the company through its current challenges.
“I understand the unique challenges and opportunities that our industry presents, and I am dedicated to steering us through crypto winters and summers alike,” he noted.
Binance CEO: Market Fundamentals Remain Strong
Since the DOJ announced the $4 billion fine, Binance has seen about $1 billion in outflow from its platform. Insight from CCData suggests that Binance now controls just 32% of crypto spot trading and 50% of derivatives trading, making the exchange position less dominant than before.
Regardless, Coinbase director Conor Grogan believes Binance has the necessary financial resources to settle its $4 billion fine without liquidating its assets. Mr Teng has also confirmed this assertion. Teng stated that the company has strong fundamentals and will take the development in stride.
“We are starting from a position of strength. The fundamentals of the business are extremely strong. Our capital structure is debt free, expenses are models, and our revenue and profits remain robust,” he said.
A Move towards Greater Transparency
Additionally, the new Binance CEO has noted that Binance will begin operating a conventional corporate structure under his leadership. This, he noted, will include a board of directors, an address, and financial transparency unlike before.
“Once you have all those corporate structure in place, I think those financials will be what we’ll be sharing. We’ve all known that auditors [require them], but the regulatory agencies will require all those things as well,” said Teng.
According to Teng, Binance will begin publishing periodic financial statements and board composition updates. However, the new CEO refrained from giving a timeline for this line of action. Again, Mr. Teng reassured the exchange’s customers of the firm’s commitment to protecting their assets.
“We are committed to ensuring you feel secure in the integrity of our platform,” he concluded.